Can't compile css files with compass

I'm starting to get slightly frustrated here. I've generated a project using the Terminal and the ST2 SDK following the tutorial. I've got everything set up and working. The only thing I can't get to work is that damn "compass compile" command.

To begin with, I really, really do not like working with the Terminal in OSX. I don't get it. Whats wrong with a nice intuitive UI? Anyway, I've read a few posts (there are really only 2 or 3) where someone mention this problem but the solutions does not work for me.

Here's the thing
When i compile i cd to the resources/sass folder and run the command "compass compile". The error I get is: "Nothing to compile. If you're trying to start a new project, you have left off the directory argument."

I'm running:
Compass version 0.12.1
Sass version 3.1.15

I've got all my paths sett up as they should in config.rb (file was generated)

Could anyone please explain the problem? (and please do not use Terminal lingo without explaining because I don't get it )

Yes, i have tried that command as well but with the same error (Nothing to compile. If you're trying to start a new project, you have left off the directory argument).

The SDKTools generates this path:@import 'sencha-touch/default/all';

I don't know if 'sencha-touch' is an alias but I've read I should change it to:@import '../themes/stylesheets/sencha-touch/default/all';

Looking at my config.rb file and at my file structure print screen, those are int the right place right?
If you look at my print screen above that default folder is located here:/sdk/resources/themes/stylesheets/sencha-touch/default/all

Should i move that folder to within sdk sibling folder resources?
Also, you write the path without the 'all' part. Is that how it should be?

Usually in terminal, I just CD into the directory that has all the config.rb file and run COMPASS WATCH. I had make sure the

HTML Code:

resources/themes/stylesheets/sencha-touch/default

was in the correct place. Mine was failing to compile because it couldn't find those.

Can you let me know what kind of errors you are getting?

I do get kind of this error now,
It's not "nothing to compile" but rather saying:

Compass is not a recognized command

so I do gem install sass & gem install compass

The command is recognized but now its saying its need compass-blueprint

apparently from certain compass version they detach that module from compass core and you need to install in as extra module,

So I do gem install compass-blueprint

?Horray!! its compiling just to say "_Class.scscs" cannot be found or can't be read + something else about font-file file. -_-"

To top it out It was working fine before and suddenly I just can't compile sass file (can it be some windows update ?)

PS: compass watch is automated version of compass compile, the main purpose is to let compass detect changes with the sass file in the directory and will compile it automaticaly instead of needing us to do compass compile every single time after doing changes to our sass file.